FOB Common Contradictions Between Chinese Shippers(1)

- Mar 20, 2018 -

FOB Common contradictions between Chinese shippers and freight forwarders.

Real case

Trade company:T( TRADING COMPANY )

Freight forwarding company:F( FREIGHT FORWARDER )

The middleman uses:  M( MIDDLE PERSON )

T : When handling a shipment of cargo,the forwarder requires to show the details of the goods. I provides 3538.5kg and 26.108cbm. But BL shows total weight 3538 kg and total mension 26.11 cbm.

F : I am asked to change back to 3537.50KGS,26.108CBM. But there is changing fee caused.

T: The bill of lading must show as freight forwarder? Can't show the rounded Numbers? Is this changing fee reasonable ?

M : 

1. It's ok to round, But on the document itself, it is better not to attach three decimal points with the number, because some carriers’ systems cannot show three-digit number.

2. As to the changing fee, it depends you request to change before or after cut-off time. If after cut-off time, T should bear changing fee.

3. Currently, Marine VGM requires that the difference between declared weight and actual weight should be within five percent (or within a ton as to those large goods). If it is beyond the scope, the goods will be easily inspected and confiscated by customs at both POL and POD.

4. If T didn’t ask F to help check the cargo details in advance, and the changing fee caused , T should bear it.